THE COMMISSIONER OF INCOME TAX -EXEMPTION vs. PHD CHAMBER OF COMMERCE AND INDUSTRY

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ITA/280/2018HC DelhiDLHC01032970201809 March 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi held that the appeal filed by the Revenue had no merit. The Court observed that the circumstances of the present case were identical to a previous case involving the same assessee, PHD Chamber of Commerce and Industry vs. Department of Income Tax-Exemptions, (2013) 357 ITR 296 (Delhi). In that prior case, the High Court had upheld an order of the ITAT that favoured the assessee. Therefore, following its own precedent, the High Court dismissed the present appeal. The operative direction was the dismissal of the appeal, meaning the ITAT's order granting exemption to the assessee for AY 2012-2013 stood.

What were the facts?

The Commissioner of Income Tax - Exemption (Revenue) is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had granted exemption to the assessee, PHD Chamber of Commerce and Industry, for Assessment Year 2012-2013. The exemption was sought under Section 11 read with Section 2(15) of the Income Tax Act. The High Court of Delhi noted that the present case's circumstances were identical to a previous case involving the same assessee and the Department of Income Tax-Exemptions, reported as PHD Chamber of Commerce and Industry vs. Department of Income Tax-Exemptions, (2013) 357 ITR 296 (Delhi). In that prior case, the High Court had upheld an ITAT order in favour of the assessee.

What were the issues?

1. Whether the assessee, PHD Chamber of Commerce and Industry, is entitled to exemption under Section 11 read with Section 2(15) of the Income Tax Act for Assessment Year 2012-2013? (Question of law and mixed fact and law) Assessee's Contention: The judgment does not record any specific arguments made by the assessee before the High Court. However, the fact that the ITAT granted the exemption implies the assessee argued successfully before the Tribunal on the grounds for exemption. Revenue's Contention: The Revenue, through the Commissioner of Income Tax - Exemption, is aggrieved by the ITAT's order granting exemption. The appeal to the High Court suggests the Revenue contended that the ITAT's decision was erroneous, likely arguing that the conditions for exemption under Section 11 and the definition of charity under Section 2(15) were not met by the assessee's activities.

Which sections of the Income-tax Act were involved?

Section 11,Section 2(15)

AI-generated summary — verify with the full judgment below

$~12 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 280/2018

THE COMMISSIONER OF INCOME TAX -EXEMPTION ..... Appellant Through: Mr.Ruchir Bhatia, Sr.Standing Counsel.

Versus

PHD CHAMBER OF COMMERCE AND INDUSTRY. Respondent

Through: None.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

09.03.2018

The appellant is aggrieved by the order of the Income Tax Appellate Tribunal (ITAT) which granted the exemption for Assessment Year 2012-2013 under Section 11 read with Section 2(15) of the Income Tax Act. At the outset, this Court notices that the circumstances in the present case are not different from those in the case of PHD Chamber of Commerce and Industry vs. Department of Income Tax-Exemptions, (2013) 357 ITR 296 (Delhi) which upheld an order of the ITAT, favouring the assessee.

In these circumstances, there is no merit in the appeal; it is accordingly dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J MARCH 09, 2018 rk

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